Now, according to managing director, Jonathan Booth, the company, its shops and mail order business are for sale.

Three shops were sold off to Peter McLuskie in July. At the same time, the company's Hedge End head office was closed and staff made redundant.

The lease is up on the City store, so it will close on October 5. Which leaves five shops to go.

Booth says Vaughan, who made his fortune from the Juliana's Discotheque chain in the 60s, has decided not to fund the company further. He would not speculate on Vaughan's reasons. "He's off sailing round the world, " he said.

Booth also refused to comment on reports that the business had to be sold by the end of October or receivers would be called in.

Rumours at the Southampton Show suggested Vaughan had made a mistake in waiting until Action Leisure had gone bust before buying.

Buying a company that had lost the confidence of its suppliers left an uphill struggle to re-establish the business.

Again, Booth refused to comment, but allowed that:

"The biggest problem we've had all year is being able to acquire stock."

The effort and cost involved in setting up from scratch were greater than anticipated, he said. "We didn't have sufficient headroom to buy stock."

Yachting Gateway remains a separate company and is unaffected.